SYDNEY: Malachite Resources Limited has executed a Share Purchase Agreement to formalise its acquisition of the remaining 85% interest in Sunshine Minerals Limited that it does not already own.

Malachite previously acquired 15% of Sunshine, a private company incorporated in the Solomon Islands. Sunshine owns 80% of Sunshine Nickel Limited (SNL) which holds prospecting licence tenement PL 01/18 located on the south coast of Santa Isabel Island in the Solomon Islands.

The remaining 20% of SNL is owned by local landowners. The Jejevo Nickel Project is located within the PL 01/18 project area.

The Jejevo Nickel Project is an advanced stage direct shipping ore nickel laterite project. The project was previously drilled in 2013 and the initial objective is to do sufficient work to confirm a 2012 JORC Resource at the earliest opportunity.

The Jejevo Nickel Project has a number of positive aspects including its close proximity to the coast, no processing requirements, low capital route to direct shipping, ore production and local landowner support. It is envisaged that mining of the project could potentially commence within 2 years.

The key terms of the Agreement include:

1. An initial payment of $850,000 to the remaining 85% shareholders in Sunshine by the issue of up to 10,617,954 fully paid ordinary shares in Malachite at a deemed issue price of $0.08;
2. A further payment of $1,105,000 to the remaining 85% shareholders in Sunshine by the issue of up to 13,803,340 fully paid ordinary shares in Malachite at a deemed issued price of $0.08 (Deferred Consideration Shares) upon the valid application for a mining lease for PL 01-18 being submitted to the Mines Department.

http://www.malachite.com.au